Investigating the Factors Affecting the Implementation of Service Costing in Universities Affiliated with the Ministry of Science, Research and Technology
Keywords:
Service costing: budgeting; higher education; Ministry of Science and Research.Abstract
The purpose of this study is to identify the key factors influencing the implementation of service cost systems in the universities under the Ministry of Science, Research, and Technology. This research employed a mixed-methods design. In the qualitative phase, grounded theory was used through semi-structured interviews with 11 experts from academic financial departments. Data were analyzed using open, axial, and selective coding. In the quantitative phase, a researcher-made questionnaire—based on the qualitative codes—was administered to 132 respondents. Structural equation modeling was employed to test the hypotheses. The results revealed that factors such as financial and budgetary system reform, university strategies, organizational management, performance-based budgeting culture, accurate cost segregation, financial controls, cost management, and financial specialization significantly affect cost system implementation. All hypotheses were statistically significant at the 95% confidence level, with positive path coefficients indicating direct effects of these variables on implementation outcomes. Successful implementation of cost-based financial systems in universities requires coherent strategies aligned with performance budgeting, optimized resource allocation, advanced IT infrastructure, financial transparency, and recruitment of skilled personnel. These measures can enhance organizational accountability, increase informational transparency, and improve operational efficiency and effectiveness in public universities.
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